In its meeting of March 30, 2021, organized in written procedure, the General Board of the NCMO approved the NCMO Decision No. D/2/2021 on approving the NCMO intention to comply with the provisions of the European Banking Authority Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14. Thus, the General Board approved the NCMO intention to comply with the EBA Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14, by incorporating them into the NCMO practices from the date when there will be a relevant institution (G-SII institution) within its jurisdiction.

The European Banking Authority Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14 was issued pursuant to Article 16 of the REGULATION (EU) No 1093/2010 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority) and is addressed also to the designated authorities referred to in Article 131 (1) of Directive 2013/36/EU, other than the competent authorities, respectively, at national level, to the National Committee for Macroprudential Supervision (NCMO). In accordance with the provisions of Articles 15 to 20 of the NCMO Regulation no.2/2017 on the methodology and procedure used for setting capital buffers and the scope of these instruments, with subsequent amendments and completions, the NCMO has attributions regarding the identification and reporting of G-SII institutions. Also, in accordance with the provisions of Article 3 paragraph (8) of Law no. 12/2017 on the macroprudential oversight of the national financial system, in order to exercise its powers, the National Committee for Macroprudential Supervision ensures cooperation and exchange of information with the European Banking Authority.

The EBA Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14 will be used for: (i) the specification of the indicators used for the identification of global systemically important institutions (G‐SIIs) as set out in Regulation (EU) No 1222/2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards for the specification of the methodology for the identification of global systemically important institutions and for the definition of subcategories of global systemically important institutions and (ii) the reporting the underlying data (indicators, ancillary data and memorandum items) and the annual disclosure of the resulting indicator values used for the identification of G-SIIs, in application of the provisions of Articles 15 to 20 of the NCMO Regulation no.2/2017 on the methodology and procedure used for setting capital buffers and the scope of these instruments, with subsequent amendments and completions.

So far, no global systemically important institutions (G‑SII) were identified within the Romanian banking sector, given the relatively small-sized institutions on the domestic banking market. An entity can be classified as G-SII where its leverage ratio exposure measure exceeds EUR 200 billion (as provided for in para. 6 of EBA/GL/2020/14) on a consolidated or individual basis.

The NCMO Decision No. D/2/2021 on approving the NCMO intention to comply with the provisions of the European Banking Authority Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14 complements the national regulatory framework represented by the NCMO Recommendation No. R/3/2021 on compliance with the provisions of EBA Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14 recommending the National Bank of Romania and the Financial Supervisory Authority, in their capacity as sectoral financial supervisory authorities, to comply with the provisions of the European Banking Authority Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14 from the date when there are relevant institutions (G-SIIs) within their jurisdiction and to ensure their enforceability against the relevant institutions.

EBA Guidelines on the specification and disclosure of systemic importance indicators